Effect of Electronic and Non-Electronic Fraud on Performance of Deposit Money Banks in Nigeria

Abstract

Fraud in the Nigerian payments system and globally has been on the increase over the past few years as technological advancement impact on the way we pay. The objectives of the study are to examine the effect of electronic and non-electronic fraud on profit before tax, return on assets and return on equity of deposit money banks in Nigeria. The study obtained data from Nigeria Interbank Settlement System Plc (NIBSS) reports. Ordinary least square diagnostic test was done through serial correlation, heteroskedasticity and Ramsey RESET Test specification to ensure that variables are in line with classical linear regression assumptions. The result of the findings among others shows a negative relationship between electronic and non-electronic fraud on profit before tax of deposit money banks in Nigeria. The study recommends that financial institutions must thoroughly report all frauds recorded so as to curb the rising trend.